A few weeks after moving into a new property, a real estate agency offered me an online appraisal service. This is how my house, which was not quite finished, had already doubled in value! I like good news but this one was a little too good to believe!
After having had the opportunity to test other online assessment models, 9 questions arise.
1 / How do the algorithms work?
Each assessment is “confidential”; algorithms, i.e. those programs that process your data in order to give it financial value, are not explained so as not to be copied. Consequently, we do not know:
- What importance is assigned to each evaluation criterion?
- How is it decided if one criterion has more weight than another?
2 / Where do the comparison prices come from?
Is my property compared to advertised property or property that has been sold? Does the online system take into account the prices advertised on real estate advertising platforms or the prices signed at the notary? There are no published recorded prices for homes that are purchased off-plan so on what basis are the appraisals of these particular properties made?
How often are updates processed to incorporate new sales?
3 / How to trust the imputed information?
The running of the evaluation system generates many questions, but the use that the vendor makes of it generates just as many ... How to guarantee the veracity of the imputed data? At some point, does the user not have the opportunity to embellish a little their property from which they wish to generate maximum benefit?
What qualifies a property in good condition?
4 / How many prospects know how to measure accurately?
The distinction between habitable m2 and non-habitable m2 as well as the definition of measurable m2 are often poorly understood and m2 then poorly calculated. How to ensure the accuracy of the imputed m2? How to measure a terrace which offers you an “additional living space”?
5 / How to evaluate objectively the work to be done?
A great classic issue in any evaluation! How much does an owner-seller estimate for the work to be done knowing that he/she is used to his/her environment and that, by dint of seeing its defects, he/she does no longer notice them and therefore tends to minimize them.
6 / What about a decor that is not to everyone's taste?
Another great classic issue ! It is difficult for an owner-seller to accept that a buyer is not a fan of his/her interior, to which he/she places great yet often disproportionate value.
7 / Information not available / not shown?
What about data not filled in or incorrectly filled in? How do they affect the overall rating? Online systems prefer to give you an assessment at all costs rather than issuing reservations and conditions for breach.
8 / What are the expectations once the assessment has been calculated?
Difficult to make a lower counter-evaluation when the owner-seller has already received a 1st estimated sum and that it has visualised what can be achieved with it. The 2nd agent assessor therefore becomes the wrong one whatever he/she says.
9 / The valuation of a property is an important step before it is put on the market. Then what?
The establishment of a marketing strategy is just as important because it measures the potential competition that the property in question would face. Whether the property is in competition with 10 similar goods or only 1 or 2, is a game changer. The more competition your property has, the more complicated the sale can be and the more your business strategy must adapt, starting with the price. Although essential, this aspect is rarely filled in in an online assessment.
At Monde Avenir, we have tried to make precise evaluations without having to travel. Even with the photos of the property in hand, the work is difficult, the notion of volume is often distorted by photos that do not "render" correctly. And then we are not always shown all of the building.
We therefore prefer:
- To go and see for ourselves in situ,
- To use our evaluation method established from 26 criteria and from 3 different angles of perspective for an evaluation as meticulous as we are!
- To provide you with the details of our evaluations in writing so as to discuss them with you in complete transparency,
- To give you the opportunity to share them with your banks and your lawyers because we know that our evaluations are admissible with your partners.
Contact us now at firstname.lastname@example.org or +352 621 355 207 ; you will receive your written evaluation within 48 hours of our site visit.